Imbalance Monomer Cost And PET Prices Forced Chinese Producers To Cut Operating Rate
- Local and export PET Bottle offers reported stable to decrease
- Demand for PET Bottle from the local and export markets is sluggish
- PET price is predicted to remain on a downtrend
Imbalance monomer cost and PET prices have forced Chinese producers to cut operating rates, SSESSMENTS.COM noted. For the week commencing November 25, local offers for PET Bottle in the country captured stable to decrease by CNY100/ton ($14/ton). While to the export market, PET Bottle offers from the producer surfaced with a reduction of $20/ton. However, some traders decided to keep the offers stable at $810-830/ton on LC at sight, FOB China basis but giving room for negotiation between $10-15/ton lower than the initial level. All price changes on a weekly comparison. Done deals would depend on purchasing quantity.
In general, demand for PET resins in the local and export market remains sluggish as the weather is getting colder, SSESSMENTS.COM was told. The sluggish demand in the export market also linked to the fierce competition and low season in the northern hemisphere. On the production sector, several producers in China reported have to reduce the operating rate due to the high PTA and MEG costs. Dragon Special Resin Co Ltd will reduce the company’s operating rate by 40% from the normal capacity in early December. Additionally, the producer plans to conduct maintenance shutdown at the company’s 260,000 tons/year PET plant starting from December 20 and will last for about three weeks. Likewise, Zhejiang Wankai's PET plant with a capacity of 1.2 million tons/year is currently running at 60% from the normal capacity.
Chinese market players contacted by SSESSMENTS.COM believe that PET prices will stay on a declining trend even until early 2020 as demand is expected to remain sluggish in the days to come.
Tags: Asia Pacific,China,English,EN PET CHINA WSS,Northeast Asia,Polyethylene Terephthalate (PET),WeeklySSESSMENTS China PET prices,PET pricesPublished on November 29, 2019 10:46 PM (GMT+8)
Last Updated on January 14, 2020 7:43 AM (GMT+8)